Shamed Broker Turns Tables on BoA

To pay for his legal costs, the first broker to face criminal charges under the wide-ranging mutual fund probe has sued his former employer, Bank of America, The Wall Street Journal reports.

Theodore Siphol, who New York Attorney General Eliot Spitzer charged with helping a hedge fund illegally trade fund shares, says his legal fees totaling $130,000 should be incurred by Bank of America. However, the bank sent a letter to Siphol on Oct. 13 saying it wouldnt pay for any of Siphols legal fees.

The hedge fund, Canary Capital Partners LLC, has already settled with Spitzers office for $40 million. Siphol has denied that he partook in the grand larceny or violation of business law, the two criminal charges he faces.

Although it wouldnt comment on this specific incident, Bank of America said through a spokesperson that it is fully cooperating with Spitzers requests. Lawyers for Siphol were not available for comment.